Is It Legal to Charge 21% VAT on a Residential Apartment in Barcelona?
Hi everyone, and thank you in advance to anyone who takes the time to read this and give advice - I would really appreciate it.
I live in Barcelona and moved into my apartment in May 2024. The place used to be an office, but it was remodeled into an apartment. There are still offices in the building, and there is a concierge, but I live here full-time as my only residence. I do not use it for work at all.
I have a normal residential rental contract. I am not autónoma/self-employed, I do not own a business, and my company does not pay for the apartment. I am simply an employee working at a separate office elsewhere.
Since moving in, I have been paying 21% VAT (IVA) on top of my rent every month. At first I did not question it because I am not very familiar with Spanish rental law, but recently my landlord sent me a 2.8% rent increase with only around 10 days’ notice before the next payment, which made me start looking into everything more carefully.
When I previously asked my landlord why I was paying IVA, she replied (translated from Spanish):
“Residential rent does not have VAT, but this is an office area that does have it. If you were self-employed, it could be deducted.”
Original Spanish:
“el alquiler residencial no tiene IVA pero esta es una zona de despachos que si lo tienen si fueras autónoma se podría descontar”
My questions are:
- Is it legal for me to be charged 21% IVA if I am using the property purely as my home and have a residential contract?
- Does the fact that the building/zone was originally offices change things legally?
- Could I potentially stop paying IVA?
- Is there any possibility I could reclaim the IVA I have already paid?
- Also, is a 2.8% rent increase with such short notice legal in Barcelona/Spain?
Thank you again for any help or guidance.